Greece to Raise Minimum Wage in February

The Greek government will increase the minimum wage effective February 1st, according to Labor Minister Effie Achtsioglou. She announced the measure on Friday in an interview with the News 24/7 radio station in Athens.

“The increase will be implemented as of February 1. The report by the committee of experts will propose an increase ranging from 5-10 percent,” the labor minister stated.

“We are aiming for an even higher increase, and we believe that the Greek economy can respond. The prime minister will announce the final decision,” she added.

At the same time, Achtsioglou stressed that “the contraction of wages and labor rights, as seen during the period 2010-2014, led to a drop in demand within the Greek economy and is an anti-growth measure.”

“Wage compression, in an economy such as that of Greece, contributes to the escalation of unemployment and a state of recession,” she added.

Achtsioglou further noted that “Our position, which is confirmed by the finding, is that the increase in employees’ incomes, on the one hand, helps bring about a fairer distribution of the generated wealth.

However, the minister explained, “On the other hand, it gives a stimulus to domestic demand, and in this sense will be a growth factor, a lever for growth.”